I ran into that too - then (this stinks) but I uninstalled the DirectX, the SDK and the Platform SDK, and installed in the recommended order, I rebooted, and it seemed OK.
I honestly don't know the "silver" bullet that made debugs start to work. It was an act of desparation because I was simply "annoyed" that it didn't work the way the IDE was meant to be used. Note - even when you do get it working - it has never allowed me to step through code - I'm sure this has something to do with how DarkGDK lib encapsulates the real void main(void) function. I just get disassembly of machine code. But it is nice that it doesn't crash my PC
Jason
Know way too many languages - Master of none